Fortrea Q3 revenue beats expectations on bookings momentum, guidance raised
Overview
US contract research organization's Q3 revenue fell yr/yr but beat analyst expectations
Adjusted EBITDA for Q3 beat analyst expectations
Company raised midpoints for full-year revenue and adjusted EBITDA guidance
Outlook
Fortrea raises midpoint of 2026 revenue guidance to $2.665 bln–$2.690 bln
Company lifts midpoint of 2026 adjusted EBITDA forecast to $210 mln–$218 mln
Fortrea narrows full-year 2026 guidance ranges for both revenue and adjusted EBITDA
Result Drivers
COMMERCIAL EXECUTION - Co said stronger commercial execution contributed to progress on its return-to-growth strategy
BOOKINGS MOMENTUM - Co said sustained bookings momentum is building a foundation for growth
OPERATIONAL IMPROVEMENTS - Co said continued operational improvements and financial discipline supported results
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $691.50 mln | $669.95 mln (12 Analysts) |
Q3 EPS | $0.01 | ||
Q3 Net Income | $600,000 | ||
Q3 Adjusted EBITDA | Beat | $58 mln | $52.08 mln (11 Analysts) |
Q3 Pretax Profit | Miss | -$3.60 mln | $29.85 mln (7 Analysts) |
Q3 Operating Income | $15 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the biotechnology & medical research peer group is "buy"
Wall Street's median 12-month price target for Fortrea Holdings Inc is $23.00, about 11.1% below its October 28 closing price of $25.88
The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 19 three months ago
Reuters Recommended Reads
Oct 27 - ICON's Q3 adj EPS and adj EBITDA beat analyst expectations
Oct 27 - Healthcare data firm IQVIA Q3 revenue beats on strong bookings
Oct 28 - Labcorp Q3 revenue beats on organic growth, operating efficiencies
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)